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The Indian government’s multidimensional approach to augment farmers’ income has spotlighted the role of Farmer Producers’ Organisations (FPOs).

Central idea

The government is employing multiple strategies to elevate farmers’ income, including productivity boosts and climate-resilient techniques. Historically, fragmented landholdings have impeded growth and investment. FPOs are introduced as a remedy to this challenge.

FPOs are clusters of farmers grouped by geography.
They can register as a company or a cooperative.
Their potential lies in enabling cluster-based farming, technological adoption, quality assurance, and helping farmers in marketing produce.

The central government has taken proactive steps by launching a scheme aimed at creating and promoting 10,000 FPOs.
These organizations encourage collaboration among farmers in various aspects, such as input management, value addition, and market linkages.

FPO’s: Engines of agri-innovation in UP

Uttar Pradesh has established a dedicated FPO cell to facilitate the development of FPOs.
With a synergy of central and state-sponsored schemes, the state plans to form one FPO in each of its 826 blocks annually for five years, commencing in 2022-23.
The FPO Shakti portal is a noteworthy initiative that serves as a centralized platform for active FPOs in Uttar Pradesh. It offers solutions for grievance redressal, business partnerships, and convergence among various stakeholders.
Currently, the portal boasts the participation of nearly 1,600 FPOs, collectively generating a turnover of Rs 229 crore, benefiting over six lakh farmers.
UP government introduced the flagship scheme, One District One Product.

Interest Subvention: The Agriculture Infrastructure Fund, constituted by the central government, provides a 3% interest subvention for credit extended to develop post-harvest infrastructure. Uttar Pradesh’s state government offers an additional 3% subvention to FPO’s and agriculture entrepreneurs, effectively reducing the interest rate to approximately 3%.
Convergence of Schemes: The government is actively fostering the convergence of various schemes related to farm mechanization, seed production and processing, agri-marketing, MSP-based procurement, nutrition mission, and supply of inputs like seeds, fertilizers, pesticides, technological interventions, and organic farming.

Crop Diversification: FPOs have played a pivotal role in crop diversification and value addition in Uttar Pradesh. They are involved in various sectors, including cereals, horticulture, pulses, oilseeds, millets, medicinal and aromatic crops, and sugarcane-based products. Seed processing units, Farm Machinery Banks, and climate-resilient strategies like direct seeding of rice are being facilitated through FPOs.
Nutrition Enhancement: FPOs are promoting nutrition-rich agri-products like millets, mushrooms, moringa, and fortified cereals. Collaborations with district administrations have improved nutritive outcomes in the region.
Business Collaborations: Over 200 MoUs have been signed between FPOs and companies for commodity marketing, input supply, technical dealership, and financial linkage. These collaborations are facilitated by the government and have led to the registration of local products under Geographical Indications (GI), further promoting indigenous agriculture.

FPO’s are the evolving backbone of Indian agriculture. Their role is pivotal in modernizing practices, introducing innovations, and reshaping the agrarian landscape to be more sustainable and profitable.